Indonesia Rejects Apple's $1B Proposal for iPhone 16 Factory Over Local Content Rules

Indonesia has stood firm on its ban on Apple's iPhone 16, rejecting a $1 billion investment proposal from the tech giant as it did not comply with the country's local content regulations. The ban, initiated by President Prabowo Subianto, was put in place in October.

Apple's proposal to build a factory in Indonesia to produce Airtags in partnership with local companies was deemed insufficient by Indonesian officials. The Indonesian Minister of Industry, Agu Gumiwang Kartasasmita, stated that Apple's offer did not meet the required certification for local content.

This move comes as part of Indonesia's efforts to enforce local content rules, which have been criticized as protectionist by businesses. The American Chamber of Commerce in Indonesia has challenged these rules, especially in sectors where local components are scarce.